← Back to Glossary
Inventory

Safety Stock

What is safety stock and how do you calculate it?

Safety stock is extra inventory held to protect against variability in demand and supply lead times. The optimal level balances the cost of holding inventory against the cost of stockouts. In African FMCG, safety stock calculations must account for unreliable supplier lead times, port congestion, customs delays, and the high cost of emergency air freight on the continent.

How iQStep handles this

Inventory Optimization with automatic safety stock calculation

See iQStep in action →

Ready to optimize your supply chain?

iQStep is the AI-native supply chain platform built for African FMCG and retail companies. Start your free trial today.

Start Free Trial